At General Catalyst, we back companies that challenge the status quo and drive innovation in industries we believe are well-positioned for transformation.Today, we are excited to announce that General Catalyst is leading Soda Health’s $50M Series B. By modernizing the payment and data systems underpinning health plans’ supplemental benefits, in our view, Soda Health has created a foundational platform that creates more value in the complex healthcare ecosystem across payors, providers, retailers, and patients, and pushes us toward our vision of health assurance.

A Market at the Crossroads of Innovation

Medicare Advantage (MA) plans deliver $131 billion annually in benefit funds such as transportation, grocery allowances, and fitness programs. However, these benefits often operate in silos, with limited integration into broader care strategies, and therefore struggle to create their intended impact. The tools that support these benefits, such as payment systems and engagement platforms, are similarly fragmented and under-optimized.

Soda Health starts by addressing these inefficiencies at their root: the financial and operational infrastructure of supplemental benefits. We believe this foundation is critical for unlocking the full potential of these programs, enabling health plans to better manage costs and improve patient outcomes.

And this infrastructure can’t come fast enough for MA plans today, which face pressure on multiple fronts. Utilization trends have increased while capitation rates have declined, forcing plans to use supplemental benefits not just as a member acquisition tool but also as a lever to improve outcomes (and therefore profitability). Additionally, recent CMS regulations increased the reporting requirements on plans, mandating they demonstrate the utilization and ROI of their supplemental benefits. Soda Health is well-positioned to help plans during this moment of market transformation, leveraging a modern payments stack and extensive retail network that streamline operations, enhance compliance, and drive real outcomes.

Beyond Financial Infrastructure

Soda Health’s platform isn’t just about providing open loop fintech infrastructure—it’s about harnessing their strategic position to seek to drive better healthcare outcomes. By combining tightly integrated and high value retail network with advanced data collection capabilities, we think Soda Health adds value to each component of the ecosystem:

• Members can better understand where and how to use their benefits and what they need to do to maximize their healthcare
• Retailers can use their weekly interaction with members to drive real health outcomes
• Payors can optimize benefit design and ensure every dollar spent aligns with improved patient outcomes

This infrastructure creates a natural pathway into patient engagement – historically separate administrative spend. By connecting supplemental benefits with actionable insights and personalized outreach, we believe Soda Health can help close care gaps, such as encouraging preventive screenings, adhering to prescribed medication, or managing chronic disease. 

The dual focus on infrastructure and engagement as we see it positions Soda Health as more than just a vendor; it establishes them as a critical partner in transforming healthcare.

Problem-Team Fit

CEO Robby Knight brings what we think is unparalleled expertise to this space. During his tenure at Walmart, he served as Head of Consumer Health Innovation. He, along with his other co-founders, Daryl Risinger, Chris Brown, and Jared Dauman, bring a deep understanding of payment systems, retail integration, and health plan partnerships – which was evident to us in Soda Health’s rapid progress and their customers’ admiration.

We also admire that Soda Health has tackled a big opportunity first: build a retail network. The company’s retail network already rivals industry incumbents, with more than 50,000 participating retailers projected by the beginning of next year. These partnerships are a key differentiator, providing proprietary data that enables Soda Health to deliver what in our view is unparalleled value to payors, patients, and retailers alike.

Partnering for Impact

At General Catalyst, we believe Soda Health is building more than just a better supplemental benefits platform—they are creating the foundation for a more connected, patient-centric healthcare system. By starting with the infrastructure and expanding into patient engagement and care gap closure, Soda Health has the potential to redefine how healthcare benefits are delivered and experienced.

We are thrilled to partner with Soda Health as they lead this transformation and look forward to supporting their journey toward a healthier, more equitable future.